SOBHA LIMITED (Formerty Sobtia Developers Limited) REAL ESTATE OPERATIONAL UPDATE — Q2 FY 2015-16 The second quarter of fiscal 2016, though beset with difficulties for the real estate sector, ended on a positive note with the announcement of the much desired rate cut by the Reserve Bank of India. With @ reduction of 50 basis points in repo rate, the central bank has sought to give an impetus to arrest the falling growth levels of the economy. The relaxation in monetary policy has come at an ‘opportune time for the realty sector, particularly, as most of the leading lending institutions have followed RBI's lead and announced a reduction in home loan rates. Though the benefits of the Interest rate cuts have not yet been passed on to the fullest possible extent by the lending institutions, we hope the same will happen in the coming quarters. Further, the RBI has also lowered the risk weightage assigned to borrowings in the affordable housing segment. It is ‘expected that the steps taken by RBI will also benefit the companies availing construction finance in the form of lowered interest rates. ‘The real estate sector has been faced with numerous challenges in the past couple of years. The impact of the stretched macro-economic fundamentals was felt keenly in the realty space with demand contracting in all markets across the country with the exception of Bangalore, As sales slowed down, the heightened interest rates and! inflationary pressures affected the performance of the sector. In this scenario, the recent steps taken by RBI, with the lending institutions seemingly following sult is a welcome respite for the sector. In this backdrop, performance of the real estate operations of the Company during the second ‘uarter of the financial year 2015-16 was satisfactory. The new sales achieved in locations outside the Company's home turf has displayed growth which is noteworthy. The contribution from these ‘markets has increased from 140,916 square feet in Qt'16 to 244,344 square feet in Q2'16, and this improvement should augur well for the remainder ofthe financial year. ‘The Company during the quarter achieved new sales of 850,329 square feet valued at € 4,950 milion with an average realisation of ¢ 5,822 per square feet. During Q2'16, the Company launched "Sobha Retreat’ in Bangalore, presidential apartments with unit size ranging between feet to 3,315 square feet, with a total saleable area of 20,584 square feet.‘The summarised real estate performance for the quarter ended September 30, 2015 Is given as under: New Sales: In Square Feet Location Q216 215 H1 16 4115 FY 15 Bangalore 605,985 561,494 1,306,468 4,089,054 2,441,493 NCR 11,941 14,435 19,048 44,642 80,540) Chennai 115,816 52,015) 181,974 84,723 197,965 Thrissur 19,757 49,126 22,975 92,993 121,847 Pune 17,365 24,207 39,270 59,902, 108,300) ‘Coimbatore 10,659 22,444 13,268 36,909 52,630, Cochin 25,810 51,397, 31,349 73,690 101,077, Calicut 36,896 33,947 62,565 60,087, 7377 Mysore 6,100 24,926 14811 46,790 87,74 TOTAL 850,329 833,991 1,691,728 1,588,770 3,279,003 Sales Value: T Square Metre = 10.764 Square Feet) Particulars Q2is Total Sales value (€ Milion) 5,905 Sales Value — Sobha Share (Million) 5,590 Price Realisati Particulars ‘Average Price Realisation - Total (© / Square Feet) Price Realisation — (& / Square Feet) ‘Sobha Share“The demand for real estate, given the right stimulus, cannot remain subdued for long. Factors such as falling interest rates, @ growing economy, increased absorption in the commercial real estate space and the approaching festive season, are expected to be decisive factors for an uptick in the realestate demand. ‘But for these positive developments, it might have been challenging for the Company to achieve its ‘guidance for the fiscal. We now expect a revival in investor sentiment and are cautiously hopeful of meeting the fiscal 2016 guidance. Investor Contact Detail ‘Subhash Mohan Bhat Bala Murugan Chief Financial Officer Senior Manager ~ Investor Relations Mobile: +91 99801 99088 Mobile: +91 98807 30459 Email: subhash,bhat@sobha.com Email: balamurugan,k@sobha.com Disclamer: The Information in this update contains certain forward-looking statements. These include statements regarding outlook on future development schedules, business plans and expectations of capital ‘expenciture, These statements are based on current expectations that involve 2 number of risks and Uncertainties which could cause actual results to difer fram thase anticipated by the Company.